Options Trading Tutorial

Question about options, puts and calls ?

I'm trying to understand how this type of information affects the stock and projected pricing. Thanks. Options, puts and calls is still rather a mystery to me, and I'm wanting to learn more about how it all works and affects the market. " Option traders piled straight into calls expiring in January as they bought strikes 17.5 through 22.5. Calls at the February 20 and 22.5 strikes were also bought. Once again implied volatility stood pat and is trading at 82%. Ok, to clarify, does buying strikes mean they're buying the option to purchase the stock at 22? If so, they're betting it will go up correct?

Public Comments

1. the strike price is the price that a person buying a call would be able to buy at, yes. so if you take a long position on a call at $20, you're paying a premium because you believe that the price of the underlying asset will be above $20 by the strike price.